What is Grid Trading?

Grid trading is a trading strategy based on stock price fluctuations. It involves presetting strategy parameters, which the system uses to execute buy-low and sell-high trades, aiming to profit from price fluctuations in swing trading.

Investors divide their portfolios into multiple portions in advance, set a base price, and plot corresponding grids based on price fluctuations around that base price. When the stock price falls and triggers a grid, they buy a portion at a predetermined price and quantity. Conversely, when the stock price rises and triggers a grid, they sell a portion. By consistently executing these buy and sell actions, they aim to profit from the price fluctuations.

How to submit a grid strategy?

Step 1. After entering the trading hall or accessing the quick trading drawer, select Grid Trading on the Order Type page.

Step 2. Enter the price and quantity parameters as prompted on the interface, and then submit the strategy.

Step 3. After submission, you can view the corresponding grid strategy record on the stock details page. Click on it to directly access the strategy details. You can also access the portfolio page or the order record page to view the corresponding strategy details, as well as the related trades and profit and loss information. If the strategy is not applicable to the current market trend or needs to be suspended for any other reasons, simply click on the strategy and choose to either suspend or cancel it directly. If adjustments to the strategy parameters are required, click Adjust to make the necessary changes.

How to set strategy parameters?

Note: Grid trading does not support pre-market/after-hour trading of US stocks and auction trading of HK stocks.

Disclosures

This article is for reference only and does not constitute any investment advice.